Myspace didn’t have programming talent capable of scaling the site to compete with Facebook.

Choosing the Microsoft stack made it difficult to hire people capable of competing with Facebook. .Net programmers are largely Enterprise programmers who are not constitutionally constructed to create large scalable websites at a startup pace.

Their system had hundreds of hacks to make it scale that no one wants to touch, which hamstrung their ability to really compete.

Because of their infrastructure MySpace can’t change their technology to make new features work or make dramatically new experiences.